Personal Loan Tips: What happens if you miss your personal loan EMI for any reason? Bankers don't tell you this secret..

Nowadays, it has become very easy to take a personal loan. The loan gets approved in a few minutes and the money comes directly into the account. But have you ever thought that if you miss your EMI in a month, what can be the serious consequences of this? Bankers usually do not tell this openly, but it can affect your entire financial life.

RBI has also recently warned that household debt is continuously increasing in the country and at the same time the cases of missing EMI have also increased. Therefore, people must take loans responsibly and repay them on time. Let us understand what can happen if you do not pay the EMI of your loan:

1. Decline in credit score

The first and biggest impact is on your credit score. Missing just one EMI can also drop your score by 50 to 70 points. This can make it difficult to take any new loan or get a credit card in the future. Interest rates may also be higher because your profile will be considered "risky".

According to credit policy expert Karamjit Singh, "Not paying EMI not only attracts penalty but also the debt recovery process can start, which can create a very uncomfortable situation."

2. Penalty and interest burden increases

Banks or NBFCs usually charge late fees of 1% to 2% for missing EMI. Apart from this, additional interest is also added to the outstanding amount. All this can increase your total liability rapidly.

According to Bhushan Padkil, a senior official of TransUnion CIBIL, "A poor payment record can harm your credit profile and deprive you of better loan offers in the future."

3. Small mistakes can lead to big danger – NPA tag

If you do not pay EMI continuously for 90 days, your loan account is declared as NPA (Non-Performing Asset). This means that your name will be recorded as a "defaulter" in the credit bureau and bank records. This stain will remain for many years and it may make it almost impossible to get a loan in the future.

4. Recovery calls and legal notices

If your EMI remains pending for more than 60 days, the bank can send recovery agents to you. In many cases, these agents even come to your home. This can make the situation quite stressful. Legal action can also be taken against you if you default repeatedly. Under Indian law, banks can also file a case against you.

5. Impact on future loan eligibility

After repeatedly missing EMI or becoming an NPA, your credit score goes down so much that no bank will easily give you a loan in the future. Even if you get a loan from somewhere, it will be available at very high interest rates and with strict conditions.

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